NORTHPORT, Alabama -- A Northport man is one of ten people named in a federal indictment charging them with defrauding thousands of victims in a vending machine "business opportunity" scheme.

James P. Ellis, 42, was taken into custody in the 12000 block of Upper Columbus Road by U.S. Postal Inspectors with assistance from Tuscaloosa County deputies this morning, said Tuscaloosa County Sheriff's Office spokesman Sgt. Andy Norris.

Ellis is charged with conspiracy to commit mail and wire fraud and an enhanced penalty for telemarketing. The indictment, returned by a federal grand jury in Miami and unsealed today, alleges that Ellis, along with nine others associated with Multivend LLC, doing business as Vendstar, made "material misrepresentations about the profits customers would make from and the locations customers would receive for bulk candy vending machines," according to a Department of Justice news release.

According to the indictment, Vendstar sales representatives promised to provide vending machines, an initial supply of candy, assistance in finding locations for machines and training to interested investors. Operators of locating companies who worked with Vendstar lacked skills, tools and expertise and often placed machines wherever they could, including in businesses that did not agree to have them placed there and demanded them to be removed, the news release said.

Vendstar's customers, who typically paid about $10,000 for the business opportunity, lost most or all of their investments, according to the indictment. Vendstar ceased operating in 2010.

"Business opportunity schemes, like this candy vending machine venture, take advantage of individuals through misrepresentations and outright fraud," said Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida in a statement. "Instead of becoming successful entrepreneurs, the individual investors become victims of fraud, often losing their life’s savings. In this way, business opportunity schemes tarnish the American Dream of success through hard work. We will help protect the investing public by prosecuting these cases aggressively."

Ellis, according to the indictment, operated Vending Dreams, Priority Placements, Clear Vision Marketing, Map Marketing and Secure Placement. He was extradited to Florida following his arrest in Northport today.

Other people named in the indictment were:

Edward Morris “Ned” Weaver, 39, of Perrysburg, Ohio, the president and chief executive officer of Vendstar.

Lawrence A. Kaplan, 54, of Brooklyn, N.Y., the technical support manager for Vendstar.

Scott M. Doumas, 40, of East Setauket, N.Y., a salesman and sales manager at Vendstar.

Mark Benowitz, 65, of Holtsville, N.Y., a salesman at Vendstar.

Richard R. Goldberg, 40, of Bay Shore, N.Y. a salesman at Vendstar.

Richard Linick, 70, of Coram, N.Y., a salesman at Vendstar.

Paul E. Raia, 61, of Brookhaven, N.Y., a salesman at Vendstar.

Howard S. Strauss, 63, of Jericho, N.Y., a salesman at Vendstar.

Wallace W. DiRenzo, 67, of Cleveland, Ohio, who operated Nationwide Locating Company, which was based in North Palm Beach, Fla.

All ten are charged with conspiracy to commit mail and wire fraud and an enhanced penalty for telemarketing. If convicted, each defendant could serve a maximum sentence of 10 years in prison.

Weaver, Kaplan, Benowitz, Goldberg, Linick, Raia, Strauss and DiRenzo were also charged with mail fraud, and/or wire fraud. That charge provides for a maximum of 20 years in prison.

"Business opportunity fraud is a serious crime that insidiously targets Americans in search of a better future for their families," said Stuart F. Delery, Acting Assistant Attorney General for the Civil Division, according to the news release. "We will continue to work with the Postal Inspection Service and use our law enforcement resources to investigate and uncover business opportunity fraud."